4003 APPLICATION ELIGIBILITY DETERMINATION

4003.1 DHCD shall perform an initial review upon receipt of each application to determine its completeness in accordance with §4002, and its compliance with program eligibility requirements as specified in §§4003.3 through 4003.12.4003.2 DHCD may reject applications which are initially determined incomplete or ineligible and may, in its sole discretion, grant additional time as it deems appropriate to enable applicants to correct deficiencies identified during the initial evaluation of the application.4003.3 To be eligible to apply for assistance, the applicant shall be a corporation or other form of organization which is neighborhood-based and is organized as a non-profit as defined by this chapter.4003.4 The specific terms of any legal agreements between a neighborhood-based non-profit applicant and any other party (excepting service or construction contracts) shall be subject to the review and approval of DHCD.4003.5 Non-profit applicants shall be required to have a Nehemiah Housing Development Plan which provides for the following:- (a) A systematic effort of door-to-door canvassing in the neighborhood where the non-profit organization is located to offer residents the opportunity to purchase Nehemiah homes;

- (b) The involvement of local neighborhood residents in the planning and design of Nehemiah Program homes, and opportunities for resident employment in the construction of homes;

- (c) The construction or substantial rehabilitation of not less than fifty (50) single family homes within the neighborhood of the non-profit organization;

- (d) The use of construction methods or other cost-saving techniques which will reduce the cost per square foot below the average per square foot construction cost in the Washington area as determined by DHCD;

- (e) The accumulation of three hundred thousand dollars (\$300,000) in non-District funds consistent with the requirements of §4003.6;

- (f) A marketing plan for the sale of Nehemiah homes which assures a range of prices for homes determined by DHCD to be affordable, and provides for the sale of at least twenty percent (20%) of all homes to low income purchasers;

- (g) A market analysis which supports the feasibility of the proposed development in terms of market demand, and takes into account the potential purchase of homes by neighborhood residents;

- (h) The assembly of sufficient land or buildings, consistent with the requirements of §4003.7, to implement the proposed Nehemiah housing development;

- (i) A qualified development team which may include an attorney, architect, construction contractor, and sales agent;

- (j) A financing plan for the construction and sale of Nehemiah homes, consistent with the requirements of §4003.8; and

(k) A Nehemiah Homebuyer Training Program, which shall provide technical assistance to Nehemiah home purchasers in the areas of financial management, legal rights attendant to homeownership, and other aspects of homeownership.

4003.6 As part of the total financing required for Nehemiah Program financing, each non-profit applicant shall be required to accumulate three hundred thousand dollars ($300,000) through membership fees, donations or gifts as follows:

1. (a) None of the three hundred thousand dollars ($300,000) shall derive directly or indirectly from the District government;
2. (b) At least one hundred fifty thousand dollars ($150,000) of the total required shall be available at the time of application to DHCD for selection under the Nehemiah Program; Provided, that credit shall be made in accordance with paragraph (d);
3. (c) Any amount short of three hundred thousand dollars ($300,000) at the time of application shall be covered by a detailed plan to raise the required funding by a time no later than the date of final approval for the project as described in §4006.11; and
4. (d) Expenditures by non-profit applicants for predevelopment costs associated with the project shall be credited by DHCD toward the three hundred thousand dollars ($300,000) required. Costs recognized shall include the cost of site acquisition (or cost of obtaining site control), reasonable professional fees for architects, engineers, development consultants, attorneys or other professional services directly related to development of the specific project site proposed in the application, and which are properly documented to the satisfaction of DHCD.

4003.7 Each applicant shall have and demonstrate evidence satisfactory to DHCD of site control of the property to be developed or rehabilitated. Evidence of site control may include, but is not limited to, the following:

1. (a) Title by deed or similar instrument evidencing ownership;
2. (b) Fully executed purchase contract, installment contract, option agreement or similar contractual instrument that DHCD in its sole discretion finds acceptable;
3. (c) Other documents including purchase or sale agreements, options or leases that DHCD in its sole discretion finds acceptable; or
4. (d) Request for an exclusive right agreement to develop land which is owned by the District government or agencies of the District government, consistent with §4008.12.

4003.8 Each applicant shall have a financing plan which includes, but is not limited to, the following:

1. (a) Proposed private and public sources for construction financing for the entire construction period (including any staging of construction);
2. (b) Detailed justification for the need for any proposed public financing of construction activities;
3. (c) Any proposed bonding (e.g., performance bonds) for construction;
4. (d) The financing plan shall meet any underwriting standards established and previously disclosed by DHCD; and

(e) Proposed private sources for permanent financing for sale of Nehemiah homes.

4003.9 Each applicant proposing new construction shall submit a statement of how the proposal conforms with current zoning or a plan for obtaining a change in zoning or any needed zoning variances within a period generally not to exceed six (6) months.

4003.10 Property proposed for Nehemiah Program development or rehabilitation shall generally not contain any residential occupants, nor shall the proposed activity require the permanent displacement of families or individuals.

4003.11 Units in each Nehemiah project shall be developed to be accessible for physically handicapped individuals or adaptable for occupancy by persons with or without physical handicaps consistent with the requirements of the District of Columbia Building Code.

4003.12 Only properties located within the District of Columbia shall be eligible for Nehemiah Program assistance.

SOURCE: Final Rulemaking published at 37 DCR 8615, 8618 (December 29, 1989).